BUS 100 Exam 2
top management
highest level of management consisting of the president and other key company Executives who develop strategic plans
Enterprise zones
specific geographic areas to which governments try to attract private businesses investment by offering lower taxes and other government support
Organizational culture
widely shared values within a company that provide unity and cooperation to achieve common goals
Chain of command
Authority that moves from the top of the company to the lower levels
What are the advantages of a sole proprietorship?
Ease of starting Being your own boss Retention of company profits
Networking
Establishing relationships with staff within and outside of one's organization. To build/weave strong relationships
Partnership
a business owned by two or more people
Franchisor
a company that develops a product and sells others the rights to make and sell the product (McDonald's, Jiffy Lube, 7-Eleven)
Business Plan
a detailed written statement that describes the nature of business, the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owner(s)
planning
a management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives
organizing
a management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve organizational goals and objectives
Entrepreneurship
accepting the risk of starting a business
Disadvantages of a corporation
additional taxes and more paperwork
Intrapreneurs
creative people who work as entrepreneurs within corporations
empowerment
giving Frontline workers the responsibility, authority, freedom, training, and Equipment they need to respond quickly to customer requests
enabling
giving workers the education and tools they need to make decisions
Participative ( democratic) Leadership
leadership style that consists of managers and employees working together to make decisions
autocratic leadership
leadership style that involves making managerial decisions without consulting others
free rein leadership
leadership style that involves manager setting objectives and employers being relatively free to do whatever it takes to accomplish those objectives
Restructuring
redesigning an organization so that it can more effectively serve its customers
conceptual skills
skills that involve the ability to picture the organization as a whole and the relationships among its various parts
objectives
specific, short-term statements detailing how to achieve the organization's goals
goals
the broad, long-term accomplishments and organization wishes to attain
strategic planning
the process of determining the major goals of the organization and policies and strategies for obtaining and using resources to achieve those goals
contingency planning
the process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives
problem solving
the process of solving the everyday problems that occur ( less formal than decision making)
Franchisee
A person who buys a franchise
Decision making
choosing among two or more alternatives
brainstorming
coming up with as many solutions to a problem as possible in a short time
Leading
create a new vision for the organization and guiding, training, coaching, motivating others to work effectively to achieve the organization's goals and objectives
Entrepreneurial team
A group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product
Sole Proprietorship
A business owned by one person
Centralized authority
An organization in which decision making authority is centralized at the top Apple Tesla
Decentralized authority
An organization in which decision making authority is delegated to the lower levels Johnson & Johnson Amazon
Matrix organization
An organization in which specialists from different areas come together to work on a specific project
Flat organization structures
An organization that has fewer layers of management Netflix Google
Tall organization structures
An organization that has many layers of management Department stores McDonald's
Bureaucracy
An organization with many layers of management who set the rules Government Universities Police Dept
Economies of scale
Companies can lower production costs by buying raw materials in bulk.
Benchmarking
Comparing an organization's practice, process against the worlds best
Cross functional self-management teams
Groups of employees from different departments who come together on a long-term project
Formal organization
Has an organizational chart that shows lines of responsibility, authority, and positions
Disadvantages of a franchise
Large start-up costs Share the profits Management regulations
Advantages of a corporation
Limited liabilities Extensive paperwork Size
Advantages of a franchise
Management and marketing assistance Personal ownership Nationally recognised name
Advantages of Partnership
More financial resources shared management longer survival
Why people take the Entrepreneurial challenge
Opportunity Profit Independence Challenge
What does it take to be an entrepreneur?
Self directed Self nurturing Action Oriented Highly energetic Tolerant of uncertainty
Disadvantages of Partnership
Unlimited liabilities Division of profits Disagreement between partners
Disadvantages of Sole Proprietorship
Unlimited liability Limited financial resources Management difficulties (No person is good at everything)
SWOT analysis
a planning tool used to analyze an organization's strengths weaknesses opportunities and threats
vision
an encompassing explanation of why the organization exists and where it's trying to head
Informal organization
an organization where employees meet and form relationships outside the formal organization. The human side of a company that does not appear on any organization chart
mission statement
an outline of the fundamental purposes of an organization
Franchise agreement
business sells the rights to use the business name and sell a product of service to others in a given territory.
Corporations
businesses that sell portions of ownership called stock shares
Limited liabilities
can only lose what one has invested in an organization
Incubators
centers that offer new businesses low-cost offices with basic business services
Venture Capitalists
individuals or companies that invest in new businesses in exchange for partial ownership of those businesses
S corporation
looks like a corporation but is taxed like sole proprietorships and partnerships
supervisory management
managers who are directly responsible for supervising workers and evaluating their daily performance
Acquisition
one company buying the property and liabilities of another organization
human relation skills
skills that involve communication and motivation; they label managers to work through and with people
technical skills
skills that involve the ability to perform tasks in a specific discipline/ Department
middle management
the level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling
Span of control
the optimum number of subordinates a person should oversee
Management
the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources
Merger
the result of two firms forming one company
Franchise
the right to use a specific business name and sell goods and services in a given area
Core competencies
those functions that the organization can do as well or better than any other organization